Max Life Insurance  has declared its highest-ever participating bonus of ₹1,420 crore for the eligible policyholders in the financial year 2021-22.

With this, Max Life Insurance surpassed the milestone of ₹10,000 crore of declared bonus for participating customers since inception (year 2001).

This is its 20th consecutive annual bonus and 9.05 per cent higher than the preceding fiscal year. The life insurer’s annual bonus has increased at a 5-year compound annual growth rate (CAGR) of more than 11 per cent.

Prashant Tripathy, MD & CEO, Max Life said, “Despite pandemic-related challenges and its effect on markets, Max Life delivered strong business outcomes and declared the highest-ever policyholder bonus by maintaining a focused approach towards sustainable and organic growth. It is a mark of our highly competitive fund management capabilities that we have been able to surpass the ₹10,000 crore milestone of declared bonus since inception.”

The declared annual bonus will be added to approximately 21 lakh eligible participating policyholder’s benefits, aiding their long-term financial goals. 

The life insurer has also strengthened participating propositions that made up 34 per cent of the proprietary channel product mix in FY21. 

Max Life’s participating fund has reached approximately ₹54,650 crore of assets under management (AUM) and has grown over 12 times in a decade. 

With a 5-year CAGR of about 21 per cent, Max Life’s participating fund is amongst the top participating fund (by size) in the private life insurance space. The debt assets of participating fund have yielded consistent and stable returns over the last five years. Over the past year, Max Life’s individual annual premium equivalent (APE) grew by 12 per cent to ₹5,514 crore in FY22.